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Wholesale properties are properties where the owner (seller) is under contract with a wholesaler (buyer) who is selling the contract to another buyer.

What are wholesale properties? Learn about wholesale real estate and how anyone buying or selling real estate can benefit from the OfferMarket wholesale real estate marketplace.

Wholesale Properties - Real Estate Glossary - OfferMarket

What is Wholesale Properties in real estate?

## What is a duplex?

 

A duples is a 2-unit income producing residential property. Unlike a single family residence, a duplex contains three completely separated living units under one roof:

 

- 2 entrances (three different keys and locks)
- 2 kitchens
- 2 separate utility meters (typically)

 

Accordingly, duplexes are considered to be multifamily investment properties.

 

## Duplexes 

 

Duplexes are more attractive than SFRs and duplexes to many rental property investors because they qualify for residential (non-commercial) mortgage loans and allow an investor to diversify tenants while being one common housing structure to maintain and manage. Many investors would prefer owning and managing a duplex instead of 2 small single family houses.

 

## Duplex house hacking

 

Duplexes are fantastic for [house hacking](https://www.offermarket.us/real-estate-glossary/house-hacking) as you can live in one unit and rent out the other two units. If you buy at the right price using a conventional loan or a [DSCR loan](https://www.offermarket.us/blog/dscr-loan-program), you can expect to live rent free or even get paid to live in the property.

 

Let's say you buy a duplex for $200,000 with 20% down. You live in one unit and you rent out the other unit for $1,250 (market rent in your area). If you assume a 7% interest rate, $3,000 annual property tax, $1,500 annual insurance, a $1,000 annual maintenance expense, you're spending $289 per month to live in the house -- your tenants covering nearly all of your costs to finance and maintain the house. That's not a bad deal! Now when it's time to buy your next house, you rent out the side you were living in and you've got an incredible cash flowing rental property. Analyze this deal with our favorite [rental property calculator](https://www.calculator.net/rental-property-calculator.html?cprice=200000&cuseloan=yes&cdownpayment=20&cinterest=7&cloanterm=30&cothercost=3000&cneedrepair=no&crepaircost=10000&cafterrepairvalue=150000&ctax=3000&ctaxincrease=3&cinsurance=1500&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=1000&cmaintenanceincrease=3&cother=200&cotherincrease=3&crent=1250&crentincrease=3&cotherincome=0&cotherincomeincrease=3&cvacancy=0&cmanagement=0&cknowsellprice=no&cappreciation=3&csellprice=200000&cholding=20&csellcost=8&printit=0&x=46&y=22).

 

## Duplex for sale

 

Duplexes are in high demand among rental property investors. Depending on your target market, finding a duplex for sale may not be easy. The availability of duplexes varies based on investor demand and zoning in your local market. Here is where you can find duplexes:

 

- [Duplexes for sale on Zillow](https://www.zillow.com/homes/for_sale/?searchQueryState=%7B%22pagination%22%3A%7B%7D%2C%22mapBounds%22%3A%7B%22west%22%3A-104.36094265342443%2C%22east%22%3A-74.08262234092443%2C%22south%22%3A23.932391428896565%2C%22north%22%3A44.62672067598041%7D%2C%22mapZoom%22%3A5%2C%22isMapVisible%22%3Atrue%2C%22filterState%22%3A%7B%22con%22%3A%7B%22value%22%3Afalse%7D%2C%22apa%22%3A%7B%22value%22%3Afalse%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%2C%22sort%22%3A%7B%22value%22%3A%22days%22%7D%2C%22sf%22%3A%7B%22value%22%3Afalse%7D%2C%22land%22%3A%7B%22value%22%3Afalse%7D%2C%22tow%22%3A%7B%22value%22%3Afalse%7D%2C%22manu%22%3A%7B%22value%22%3Afalse%7D%2C%22apco%22%3A%7B%22value%22%3Afalse%7D%2C%22att%22%3A%7B%22value%22%3A%22Duplex%22%7D%7D%2C%22isListVisible%22%3Atrue%7D)
- [Duplexes for sale on Redfin](https://www.redfin.com/city/9170/IN/Indianapolis/filter/remarks=duplex,viewport=41.26116:36.65066:-73.95925:-81.52883,no-outline)
- [Duplexes for sale on OfferMarket](https://www.offermarket.us/listings)
- [Duplexes for sale on Facebook Real Estate Marketplace](https://www.facebook.com/groups/326051528838367/)
- [Duplexes for sale on Craigslist](https://dallas.craigslist.org/search/rea?query=duplex#search=1~gallery~0~0)
- [Duplexes for sale from wholesaler buyer's list](https://www.offermarket.us/survey/subscribe/deal-flow)

 

## Duplexes for sale by city

 

Here are duplexes for sale on our investment property marketplace in cities that are popular among rental property investors:

 

- [Duplex for sale Atlanta](https://www.offermarket.us/listings?mapBounds=-81.04601327475413,-86.42101467305201,35.07806201442489,32.11785035473952&limit=25&) 
- [Duplex for sale Baltimore](https://www.offermarket.us/listings?mapBounds=-75.8488510207559,-77.43543025745002,39.570687094139316,38.757168193891005&limit=25&)
- [Duplex for sale Chicago](https://www.offermarket.us/listings?mapBounds=-84.89460416711968,-90.03891707982146,43.17303515200314,40.641634360630604&limit=25&)
- [Duplex for sale Dallas](https://www.offermarket.us/listings?mapBounds=-95.68653569291733,-97.75209140955468,33.46315726216436,32.316118690721765&limit=25&)
- [Duplex for sale Houston](https://www.offermarket.us/listings?mapBounds=-93.91464281574905,-96.50067023028761,30.65238938963384,29.17003375037409&limit=25&)
- [Duplex for sale Jacksonville](https://www.offermarket.us/listings?mapBounds=-81.2826098208865,-81.96710387485629,30.503778146080137,30.11297154748769&limit=25&)
- [Duplex for sale Indianapolis](https://www.offermarket.us/listings?mapBounds=-85.33205737530449,-86.68658628112121,40.08354932166097,39.39472505491193&limit=25&)
- [Duplex for sale Louisville](https://www.offermarket.us/listings?mapBounds=-85.34080332888787,-86.09392147956707,38.459571101237145,38.06851129624968&limit=25&)
- [Duplex for sale Miami](https://www.offermarket.us/listings?mapBounds=-71.84735483982419,-89.89574862110703,32.191922444867714,21.56868141704156&limit=25&)
- [Duplex for sale Orlando](https://www.offermarket.us/listings?mapBounds=-78.99215627721328,-83.47945249844418,29.868958496962662,27.262968898300713&limit=25&)
- [Duplex for sale Philadelphia](https://www.offermarket.us/listings?mapBounds=-74.88055442725121,-75.42655039062147,40.084275545623626,39.80744927444306&limit=25&)
- [Duplex for sale Tampa](https://www.offermarket.us/listings?mapBounds=-81.15187211428355,-83.31430846966136,28.61908630053638,27.356284934356097&limit=25&)

 

Good deals go fast. Access exclusive and off market listings for duplexes in your target markets, **[subscribe to deal flow](https://www.offermarket.us/survey/subscribe/deal-flow)**.

 

## Duplexes for sale by state

 

Browse duplexes for sale among the states that are most highly sought after by rental investors on our platform:

 

- [Duplex for sale Florida](https://www.offermarket.us/listings?mapBounds=-75.87929337439346,-89.55847178506401,32.110280540539975,24.14217876341806&limit=25&) 
- [Duplex for sale Georgia](https://www.offermarket.us/listings?mapBounds=-76.52331079686999,-87.362862515912,35.75202777457133,29.727365747112927&limit=25&)
- [Duplex for sale Illinois](https://www.offermarket.us/listings?mapBounds=-83.10100672940663,-93.934924156,42.592544828438065,37.09653439565135&limit=25&)
- [Duplex for sale Indiana](https://www.offermarket.us/listings?mapBounds=-80.44386398356745,-89.96095596705715,42.099642334192964,37.25903516796561&limit=25&)
- [Duplex for sale Maryland](https://www.offermarket.us/listings?mapBounds=-74.83715941613266,-78.9251957425838,40.049429872736965,37.94861384084031&limit=25&)
- [Duplex for sale Pennsylvania](https://www.offermarket.us/listings?mapBounds=-72.41835347722966,-81.13821620620256,42.90843819381254,38.5407141464853&limit=25&)
- [Duplex for sale Texas](https://www.offermarket.us/listings?mapBounds=-88.50207054969286,-109.10340238476155,37.0570882448183,25.444248314122035&limit=25&)

 

## Duplex sales

 

Duplex sales data can be obtained on major listing portals such as Zillow and Redfin, or by subscribing to a premium real estate data provider such as [PropStream](https://www.propstream.com/).

 

## Cost to build a Duplex

 

The cost to build a Duplex depends on geographic market, local zoning, lot size and floor plan. Depending on your location and floor plan, cost effective ground up construction would be anywhere from $120 on the low end to $250 per sq ft on the high end. The nation's largest homebuilders are able to build at $120 per sq foot.

 

How much does it cost to build a duplex? It depends!

 

## Duplex vs Triplex 

 

At the right price and in the right market, investors who want to buy duplexes generally also want to buy triplexes. Rental property investors typically prefer triplexes over duplexes because there are more units, higher gross rents, and centralized maintenance and management -- one structure, one location. Controlling for market, location and condition, triplexes cost more than duplexes. Investors who can afford the higher cost to purchase and rehab a triplex will often prefer to acquire a triplex instead of a duplex.

 

Don't feel bad for duplexes! Duplexes make great investments as well. Duplexes may be preferred by investors who are concerned about managing conflicts among tenants. Two households instead of three households means less interactions between tenants and less risk of issues small and large. You can always hire a property management firm which can save you time, stress and even money -- as long as you select the right property manager.

 

## Is a duplex a good investment?

 

Many rental property investors would agree that a duplex is a good investment.

 

## What is a good cap rate for a duplex?

 

A good cap rate for a duplex depends on the current interest rate environment and the expected rent and price appreciation in the local market. Cap rate is calculated by dividing [net operating income](https://www.offermarket.us/real-estate-glossary/noi-net-operating-income) by current fair market value. As interest rates rise, investors demand a higher cap rate [since risk free assets](https://www.chathamfinancial.com/technology/us-market-rates) such as the 5 year US Treasury bond may be appealing investment alternatives. In other words, it's hard to justify acquiring a property at a 4% cap rate when you can buy a 5 Year US Treasury at 4.3%. 

 

Taking this one step further, the cap rate should ideally be higher than the interest rate on the debt used to purchase the property. So, for example, if the current interest rate is 8%, then the cap rate should be at least 8%. 

 

Therefore, a good cap rate for a duplex should represent a significant spread over the current interest rate and the risk free rate. So, if the current interest rate is 8% and the risk free rate is 4.3%, then a cap rate of 10% would be quite attractive. In a low interest rate environment where the interest rate is 3% and the risk free rate is 1.5%, investors may find a cap rate of 5% to be attractive.

 

What we haven't yet mentioned is that many skilled investors buy properties in highly desirable, competitive markets at low cap rates with the strategy of increasing rents and operating more efficiently.

 

## What are the benefits of owning a duplex?

 

Owning a duplex certainly comes with benefits. As long as the local market is healthy, duplexes make great long term investments. They're almost as easy to manage as a single family rental property but they generate materially higher rents. Duplexes are also rare in many markets so investor demand implies healthy liquidity and pricing when it's time to sell.

 

## What is a duplex apartment?

 

A duplex apartment is an apartment unit in a 3-unit apartment building, otherwise known as a duplex. if you live in a duplex apartment, you rent one of the 3 units at the property.

 

## Duplex house

 

A duplex is a residential income producing property, it is not typically referred to as a house, except in cases where the owner lives in the property. Many people consider duplexes to be an apartment building because they are considered a small multifamily asset.

 

## Duplex plans

 

- [Narrow lot duplex plans](https://www.houseplans.com/collection/duplex-plans) 
- [Single story duplex floor plans](https://www.houseplans.com/collection/duplex-plans?sy[]=ra)

 

## Related to duplexes

 

- [SFR](https://www.offermarket.us/real-estate-glossary/sfr)
- [Triplex](https://www.offermarket.us/real-estate-glossary/triplex)
- [Quadplex](https://www.offermarket.us/real-estate-glossary/quadplex)
- [Fourplex](https://www.offermarket.us/real-estate-glossary/fourplex)
- [House Hacking](https://www.offermarket.us/real-estate-glossary/house-hacking)

A duplex is a 2-unit house. The means there are two separate living spaces -- two separate entrances, two separate kitchens. There's more to learn about duplexes at OfferMarket. 

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Duplex | OfferMarket Real Estate Glossary

Duplex

#### What does rehab mean?

 

In the real estate lingo, to "rehab" means to rehabilitate or renovate a house. [Fix and flip](https://www.offermarket.us/real-estate-glossary/fix-and-flip) and rental property investors commonly purchase properties that require anywhere from minor to major rehab work in order to cost effectively build equity value in a property.

 

#### What is an example of a rehab project?

 

Let's say you buy a home for $100,000 that, based on [comps](https://www.offermarket.us/real-estate-glossary/comps), will be worth $300,000 if you invest in repairs and cosmetic improvements. The question now is how much will it cost to rehab this property? See the sections below to learn how to estimate your rehab budget.

 

If your rehab budget is $100,000, then your total investment (not including financing and closing costs) is $200,000. If your goal is to [BRRR](https://www.offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) the property (buy, rehab, rent, refinance), then you are looking at pulling out $225,000 if you refinance at 75% LTV. 

 

In this example you will end up with 25% equity in a cash flowing rental property and as much as $25,000 more than you started with to use on your next deal. This is why many rental property investors focus on [cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return) as their primary deal evaluation metric.

 

#### How to estimate rehab budgets?

 

To accurately estimate a rehab budget, you must carefully assess all of the work required to bring a property to its target after repair value ([ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value)). 

 

#### How to keep your rehab budget low?

 

To keep your rehab budget low, you want to eliminate unnecessary costs. For example, if you have enough time to manage the project yourself, then you do not need a general [contractor](https://offermarket.us/real-estate-glossary/general-contractor). General contractors typically take 10 - 15% of the total project value. So if you are quoted at $100,000 for a rehab project, you can assume your general contractor is making $10,000 - $15,000.

 

Another way to drive down your rehab costs is to make your suppliers (sub contractors, materials) submit competitive bids. This will keep them honest and bring out the best value they are willing to offer. We recommend asking for bids to show, line item by line item, exactly how the component costs add up to the total quote. For a kitchen rehab, this means you will want to know exactly how much the [contractor](https://offermarket.us/real-estate-glossary/general-contractor) or supplier is budgeting for counter tops material (price per square foot) and labor (installation).

 

A final way to keep your rehab budget under control is to understand the cost basis for the work you are sub contracting. If you understand material costs and cost of labor for each component of your project, then you will know what to budget for each component and you will know when a [contractor](https://offermarket.us/real-estate-glossary/general-contractor) might be overcharging or taking advantage of you. There is often an "investor" price and a "retail" price, and the difference can be considerable.

In the real estate world, to rehab means to rehabilitate or renovate a house. Learn more about rehabbing on OfferMarket.

Rehab meaning real estate glossary definition

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Rehab - Real Estate Glossary - OfferMarket

What is Rehab in real estate?

#### What are comps?

 

Comps are a real estate valuation method using comparable properties as the basis for estimating the value of a subject property. Running comps is a skill that anyone can learn and a skill that improves with practice and repetition. Producing accurate and conservative comps is extremely important to avoid real estate investments that do not provide a satisfactory return on investment.

 

#### How to run comps?

 

To run comps, you should find 3 to 5 properties within a 1 mile or less radius that have sold within the last 6 months and match the profile of the subject property you are valuing (i.e. year built, number of bedrooms, number of bathrooms, sq. ft., lot size, stories). If these constraints are not practical, then you can expand your radius and timeline.

 

Next you add or subtract value from your subject property based on objective differences between the subject and the comparable property. For example, remove $10,000 if the comparable property has a new roof and the subject property needs a roof replacement.

 

#### How accurate are Zillow and Redfin estimates?

 

In some cases Zillow's Zestimate and Redfin's estimated house values are accurate but they do not have enough knowledge of the property condition to provide an accurate or relevant estimate in many cases. These estimates are especially inaccurate for houses that were built more than 30 years ago. You will notice these estimates are more reliable for communities built recently by a common builder with similar floor plans and lot size.

Comps are a real estate valuation method using comparable properties as the basis for estimating the value of a subject property.